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Suncor Energy is preparing for all contingencies when in comes to the fate of the Terra Nova FPSO. The operator recently issued Expressions of Interest (EOI) related to the FPSO, including two that prepare for decommissioning of the vessel and the field, while another provides an update to a previous EOI preparing for remediation of the FPSO to support the asset life-extension project. The move has the Newfoundland and Labrador Oil & Gas Industries Association (NOIA) concerned about the future of the vessel and the field. "NOIA members and our Board of Directors are deeply concerned for the future of the Terra Nova Project and the far-reaching impacts decommissioning and abandonment would have upon our industry, the people who work in it, and our province," said Charlene Johnson, chief executive of NOIA. "I understand the deadline to reach a deal on the Terra Nova Project was extended to April 30--which has now passed--and NOIA is encouraging all parties to reach an agreement as quickly as possible."
The status of Suncor Energy's Terra Nova floating production storage and offloading (FPSO) remains in flux after the company reported a fire on 30 May coming from the vessel's low-pressure (LP) separator. The fire was extinguished with no injuries and all personnel accounted for. There is no gas or crude held onboard the vessel, which has been shut down for maintenance. The fire comes 6 months after the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) issued an order to suspend production-related operations on the FPSO vessel, approximately 350 km east of St. John's. The C-NLOPB determined in December that Suncor was not compliant with regulatory requirements under the Atlantic Accord Implementation Acts to maintain and comprehensively inspect equipment critical in the safe operation of the installation, to ensure repairs are carried out in a timely manner, and to ensure that mitigation measures are effective in minimizing hazards.
Abstract This paper will give an overview of current and planned future offshore exploration, development and production activity taking place off the east coast of Canada. It will also cover other items of interest occurring in that area including industry related research and development, recent changes in government policy and future growth potential of the industry. Information provided in this paper will be of interest to petroleum supply/service companies wishing to market their goods and services in this region of Canada as it will identify what producers are active in this area and possible future growth opportunities. In addition, the information provided on petroleum related research and development taking place and being applied in the region for offshore development and production would be of interest to a technical audience wishing to apply such research and development to other producing areas. Introduction Atlantic Canada is the eastern region of Canada that is comprised of four provinces - New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador. The Atlantic Canada offshore oil and gas industry refers to the oil and natural gas exploration, development and production industry off the east coast of Canada. At this time, all offshore petroleum industry activity is taking place offshore Nova Scotia and Newfoundland and Labrador. Fig. 1 shows the Newfoundland and Labrador and Nova Scotia offshore areas.
Industrial benefits planning (IBP) can greatly assist oil companies inseeking to access or operate in frontier regions, including the Arctic. Anumber of ‘good practice' approaches in the design and implementation ofsuccessful benefits plans have emerged. There is a general need for initiativesin such areas as supplier development, procurement/contracting, education,training and hiring. However, these initiatives, and an IBP program as a whole,will be most effective if the following approaches are adopted: cooperation,collaboration and education; building on existing strengths and capabilities;and seeking a diversified and more sustainable economy.
The Hebron Benefits Plan provides a recent and often innovative example ofpetroleum industry benefits planning. Of particular interest is the emphasis itplaces on: the role of contractors and suppliers, leaving a lasting legacy, andcooperation and collaboration with other stakeholders. In a further benefitsplanning innovation, ExxonMobil Canada Properties states that it will establishand maintain a ‘benefits culture,' based on the well-established model ofsafety culture, within its organization and all Hebron contracting companies.The Plan presents policies, guidelines and procedures with respect to supplierdevelopment, contracting and procurement, employment and training, research anddevelopment (R&D), diversity, and monitoring and reporting.
Recent initiatives in Greenland illustrate the challenges faced inimplementing more limited benefits initiatives in an Arctic and near-Arcticenvironment. Cairn exploration programs have had Government of Greenlandmandated benefits plans and agreements that have delivered both employment andbusiness to Greenland residents and companies. They have also put in place newinfrastructure, for example related to weather forecasting and oil spillcontingency equipment. However, not all of the employment, business andinfrastructure initiatives have delivered the desired effects.
Newfoundland and Labrador, Canada, is an example of a jurisdiction where,facilitated by well-established IBP processes, the offshore petroleum industryhas delivered substantial and sustainable economic development. This is partlya result of the creation of a new offshore petroleum sector of the economy thatprovides employment and business and makes a major contribution to theProvince's GDP and tax base. Newfoundland and Labrador also now has anexpanding university sector, large numbers of university graduates, a small butthriving R&D community, an increasingly diverse and cosmopolitan urbanculture, and improved external transportation links, all of which can be atleast partly attributed to the oil industry.